'This Week' Transcript: Timothy Geithner

That's the underlying questions in terms of the budget and the
deficit and health care as well, for that matter. And that's what we
should be debating. He laid out a clear vision of the kind of country
that he believes in, that I believe in, I think most Democrats, and
for that matter, most Americans believe in. And it's a -- it's a
fiscally responsible but also mutually responsible kind of community.
And I support that.

DOWD: I -- to me, this whole budget fight demonstrates a
complete abdication of responsibility by both political parties in
this. Both political parties aren't willing to tell the truth to the
American public in different ways.

The Republicans aren't willing to tell the truth to the American
public that we don't have enough revenues to pay for everything that
we have. The Democrats are unwilling to tell the truth to the
American public that we cannot live anymore with the entitlement
programs as they exist today.
To me, the president -- he gives a good speech; he does all that;
Republicans make these grand announcements, but in the end, they are
unwilling to tell the American public the truth.

They keep telling the American public they can have it all and
they don't have to pay for it. To me, the difference between the two
political parties today is you have a Democratic Party that believes
in big government that shouldn't be paid for, and you have a
Republican Party that believes in a slightly less big government that
shouldn't be paid for. That's the problem.

AMANPOUR: Let's go back to the Paul Ryan budget, which you
worked on elements of. I just -- I know it's not exactly as it turns
out.

RIVLIN: Oh, it isn't -- it isn't at all. I worked with one
element. Paul Ryan and I have worked together on a concept for
Medicare reform called premium support. It's very much like what they
do in Governor Patrick's state. But the form in which Ryan put it in
his budget was not the form that I support -- much, much lower and
much more drastic cuts for seniors.

But I don't support the Ryan budget. I think it illustrates how
much you'd have to cut if you don't raise taxes and you don't cut
defense.

AMANPOUR: So you heard the argument with the Congresspeople,
just in the previous segment, when they were talking about Medicare.
And the whole idea is that, apparently, according to economists, that
the elderly would have to contribute more of their own, under this
reform. Is that sustainable?

RIVLIN: Some of the elderly will have to contribute more,
particularly those in upper-income groups. Medicare, in its present
form, is not sustainable. We -- it is growing faster than the economy
is growing and faster than we can afford.

So we have to have a reform of Medicare, phased in gradually.
It's not going to throw granny in the street. And I'm granny.

(LAUGHTER)

But it's got to reduce the rate of growth of Medicare. Now, the
president's for that, too. He just has a different way of doing it.

PATRICK: Christiane, may I just build on that? Because I want
to come back to Matt's, I think, really important points, although I
want to differ with your -- with your outcome.